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Hypotheses for managed services

How to write a misery hypothesis for managed services buyers, who rarely switch providers until the current one becomes hard to defend.

Kevin French
· 3 min read

Managed services buyers don't switch providers for a better pitch. They switch when the current provider has quietly become a problem they can't defend upstairs anymore.

So your hypothesis has to name that problem. Not your service catalog.

The buyer already has someone

This is what makes managed services different from project work. In a modernization deal, the buyer often has nobody doing the work yet. In managed services, somebody's already there. There's a contract, a renewal date, a relationship manager who takes them to dinner and a set of service levels that look green on every monthly report.

Your opener is competing with inertia. Switching costs are real. Transition risk is real. A bad cutover gets someone fired.

That means a generic "we run infrastructure better and cheaper" email gets deleted. The buyer has heard it from every provider who wants the renewal.

Where the misery hides

The pain in a managed services account rarely shows up as an outage. It shows up as drift. The reports are green, but the business side keeps complaining. Tickets get closed on time and reopened a week later. The provider's best people rotated off after year one and the replacements are learning on the client's dime. Every small change becomes a change request with a price tag.

And the person who signed the deal is often gone. A new leader inherits a contract they didn't choose and a provider they didn't pick.

That's where good hypotheses come from. Look for the gap between what the contract measures and what the business feels.

The signals that point at it

Start with the public record. A 10-K or 10-Q that mentions a cost program, a shared services consolidation or legacy systems tells you someone is looking at run costs. Job posts for a vendor management lead or a service delivery manager tell you they're building the muscle to manage providers harder, or to bring work back in house.

Then the social context. A new head of infrastructure or a new CIO in the first 90 days is the strongest opening in this category. They're reviewing every contract anyway. A leader posting about getting back to basics, or about frustration with ticket queues, is telling you more than they realize.

Then the market. If a competitor of theirs just moved a big run contract, peers notice. Leaders compare notes.

Stack two or three of these and you have a real hypothesis. One alone is a guess. The buying signals guide covers how they combine.

Writing the opener

Keep it short. Name what you saw. Make it matter to their seat. Guess at the misery. Give them an easy way to tell you you're wrong.

Say a new VP of infrastructure started at a regional logistics company six weeks ago, and the company's latest 10-Q mentions a program to cut operating costs.

You started as VP of infrastructure in the middle of a cost program, which means every run contract is about to get a hard look. My guess is the outsourced service desk reports green every month, but the business teams still route around it and the cost of change requests keeps climbing. Is that close, or is the bigger issue somewhere else?

Notice what's not in there. No logo list. No "best in class". No request for 30 minutes. It's a guess about their world, stated plainly enough that they can correct it.

When the guess is wrong

It often will be. That's fine.

A VP who writes back to say the service desk is fine and the real problem is the cloud bill just handed you the answer for free. You'd never have gotten that from a discovery call you begged for. Managed services buyers carry a lot of quiet frustration, and a specific wrong guess gives them permission to say it.

What you can't do is guess vaguely. "Are you happy with your current provider?" isn't a hypothesis. It's a survey question, and nobody answers surveys from strangers.

Who else should hear it

Managed services deals get decided by more than the infrastructure leader. Finance owns the contract value. A technical lead owns the day to day pain. Write a version for each, with the same research and a different misery.

The technical lead's misery is the reopened tickets and the runbooks nobody updates. The CFO's misery is paying for green reports that don't match how the business feels. The infrastructure leader's misery is defending a contract they inherited.

Three notes, one account, one set of facts underneath. That's how you get a seat at the renewal before the renewal is a formality.

The method behind this is on the method page. The craft is in naming the drift before the buyer has said it out loud.

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